Battle over Underwood dealership in Clinton Twp. headed toward trial

ADRIAN — A legal battle among family members over control of the Underwood Chevrolet Buick dealership in Clinton Township is headed toward trial in Lenawee County Probate Court.

Judge Gregg P. Iddings denied motions for summary disposition on several core issues in the case. He ordered a two-part trial to first determine if a nephew of former owner John Underwood agreed to surrender his 25 percent share of stock in the dealership. If not, Iddings is to decide on the nephew’s demand the business be put under the control of a receiver while an independent accounting of assets is conducted.

The lawsuit was brought last year by Jack Fetkenhier Sr. He was fired as general manager of the dealership on Aug. 24, 2011, after a 38-year career.

He claimed the firing was part of an attempt to force him to surrender his shares in the business after he refused to personally guarantee $843,000 in loans to remodel the dealership under a General Motors program.

Attorneys for majority owners John and Gloria Underwood filed a counter-suit, claiming Fetkenhier agreed in November 2010 to return stock given him as an incentive to take on more management of the dealership. He failed to improve his performance at the dealership, they claimed.

Iddings ruled Monday that it has been established Fetkenhier was given a 25 percent share of company stock in May 2010. But there remains a question to be settled at trial as to whether Fetkenhier made an enforceable oral agreement to return the stock later that year.

If it is determined he retains the stock, Iddings said, a second phase of the trial will begin on his demand for a receiver and an accounting of assets.

Iddings did grant a defense motion to dismiss Fetkenhier’s claim of intentional emotional distress. There is not enough evidence to support a finding of extreme and outrageous conduct as defined by Michigan courts, he said.